A debt-restructuring action that poured $3.4 billion into Ford Motor Co. coffers offset sagging second-quarter revenue and returned the auto maker to profitability for the first time since early 2008.
Ford reports a net income of $2.3 billion, an $11 billion swing from like-2008’s net loss of $8.7 billion. The auto maker’s last positive result was first-quarter 2008’s $100 million tally.
Ford reports a pre-tax operating loss of $424 million, excluding special items. But this compares favorably with prior-year’s $1 billion shortfall.
Ford’s second-quarter revenue totaled $27.2 billion, down $11 billion from year-ago.
“Our underlying business is growing progressively stronger as we introduce great new products that customers want and value, while continuing to aggressively restructure our business and strengthen our balance sheet,” CEO and President Alan Mulally says in a statement.
The auto maker says it expects to meet or exceed its 2009 financial targets and “most of its operational metrics.”
Ford anticipates full-year market-share improvement in the U.S. and Europe compared with 2008.
The auto maker’s automotive business recorded a second-quarter pre-tax operating loss of $1 billion, exceeding like-2008’s $699 million shortfall. Ford blames lower industry volumes, inventory-reduction measures, rising material costs and unfavorable exchange rates.
Total vehicle sales were 1,172,000, compared with 1,562,000 in second-quarter 2008.
However, labor-cost reductions in North America and Europe are credited with saving the auto maker $1.1 billion in manufacturing and engineering expenses.
Automotive operations in North America lost $851 million, pre-tax. But this represents a $2.2 billion swing from prior-year’s $1.3 billion loss.
Ford’s automotive operations in Asia Pacific and Africa lost $25 million, a sharp turnaround from like 2008’s $50 million profit.
Europe and South America recorded pre-tax profits of $138 million and $86 million, respectively. But both totals were down from like-2008.
Europe was $582 million in the black last year, while South America raked in $388 million.
Reduced volumes was a factor in both regions.
However, Ford notes some positive momentum. The auto maker recorded share increases in the North American market, while in June, the Ford brand topped Canadian-market sales for the first time in more than 50 years
Meanwhile, Ford’s total sales in China rose 39% in the second quarter and the all-new Ford Fiesta B-car rose to second place among Europe’s best-selling nameplates.
